How Does The U.S. Fund Its Enemies In The South China Sea?

Peter Pham
, ContributorI write financial newsletters for investors on how to profit in Asia.Opinions expressed by Forbes Contributors are their own.

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Peace treaties in the South China Sea are going downhill and regional tensions that are boiling over. In addition to China’s aggression, North Korea’s unpredictable nature is creating an unprecedented arms race, bringing the region ever closer to war. So, the world is bracing…

But if all-out war doesn’t occur and a trade war fizzles out, will there be peace in the South China Sea?

Not really.

The South China Sea is experiencing a gathering of the clouds. Rather than rumbling against the U.S., China would rather use precision warfare.

From the Ancient Romans to the British Empire, global superpowers built large armies to showcase their strength to the world. But that time has ended. Unlike the U.S., China isn’t looking to send thousands of solders overseas. Instead, it prefers influencing both Taiwan and the South China Sea, while limiting the U.S.’s power.

China isn’t going after an “overkill”. Even though it has the world’s largest armed forces, China also pursues tactics and technologies that can disrupt and disarm its enemies.

From ballistic and cruise missiles to high-tech air platforms and other precision warfare, China’s arsenal is vast. However, these analog weapons aren’t enough against digital warfare. So, China is developing that too, specifically by investing in electronic warfare capabilities capable of disrupting communications and computer networks.